Amazon Drops Google Shopping Ads Globally, Slashing CPCs by 25-30%
Amazon has made a significant move in its advertising strategy, completely withdrawing its Google Shopping ads across global markets between July 21 and July 23, 2025. This decision signals the e-commerce giant's confidence in alternative traffic sources and a willingness to sacrifice Google-driven traffic to maintain higher profit margins and customer relationship control.
The withdrawal has had immediate effects, with cost-per-click reductions of 25-30% across affected markets, as reported by Manuel Arrufat, CEO of Madrid-based advertising analytics company Dolnai. This move has impacted global markets uniformly, suggesting a coordinated strategic decision rather than market-specific testing. Amazon's median Shopping ad impression share has crashed in major markets, including the United States, United Kingdom, and Germany, during the 48-hour period.
Amazon's decision has significant strategic implications. It could potentially impact Google's advertising revenue and Amazon's customer acquisition strategies. This marks Amazon's most substantial advertising strategy shift since a similar blackout during the 2020 lockdowns. Market observers note that Amazon had already reduced its Google Shopping spend by 50% in the United States during May 2025, indicating months of strategic planning leading up to this withdrawal.
Amazon's complete withdrawal of Google Shopping ads is a strategic move that could reshape the e-commerce landscape. While the immediate effects include cost reductions, the long-term implications for both Amazon and Google's advertising revenue remain to be seen. Amazon's confidence in alternative traffic sources and willingness to maintain control over its customer relationships is clear, as it continues to explore new advertising avenues.
